‘Dollar Demand’ Pushes Rupiah to 10-Year Low

As the rupiah tumbled on Tuesday to its lowest level against the dollar in 10 years, Bank Indonesia Governor Boediono vowed to defend the currency, describing the exchange rate as being at an “unrealistic level.”

The currency of Southeast Asia’s largest economy hit Rp 12,275 against the dollar at 9:30 am in Jakarta, its lowest level since September 1998, according to data compiled by Bloomberg. The dollar had been trading in the vicinity of Rp 11,850 late Monday, but was at Rp 12,100 on Tuesday night.

“We will direct [the rupiah] to a good and realistic level,” Boediono said. “We will not let the market lead the exchange rate to an unrealistic level.” Read in full